Brazil Expecting 7.18% Growth This Year

The latest weekly market survey by Brazil’s Central Bank shows that the market continues to see vitality in the industrial sector and is now forecasting growth of 7.18% for the year. That number is up from 6.55% a week ago.

Market continues to see economic vitality and raises expectations
growth
Stênio Ribeiro


Brazil Expecting 7.18% Growth This Year
Growth


The latest weekly market survey by Brazil’s Central Bank shows that the market continues to see vitality in the industrial sector and is now forecasting growth of 7.18% for the year. That number is up from 6.55% a week ago.


The survey, known as Focus, interviews consultants and analysts in the financial and banking sector.


With a stronger performance expected in the industrial sector, the market also raised its expectations for this year’s GDP growth: from 4.50% to 4.53%. And at the same time boosted its forecast for GDP growth for next year from 3.55% to 3.60%.


Market expectations with regard to the debt/GDP ratio also improved; going from 55.1% at the close of this year, to 54% for next year.


One market expectation that has not stopped rising is with regard to the trade surplus. It just keeps going up.


Last week the market forecast was for a year-end surplus of US$32.3 billion. This week that rose to US$32.5 billion.


The market forecast for the year-end trade surplus in 2005 is now at US$27.08 billion.


Market expectations regarding interest rates show that the country’s benchmark rate (Selic) is forecast not to be more than 17% by the end of the year.


Last month, the Selic was raised from 16% to 16.25%, and the market expects a further increase of 0.25 percentage points this week, which will bring the Selic to 16.5%.


Agência Brasil
Translator: Allen Bennett

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